COP27 has recently come to a close. As the sand and dust settle in Egypt we have studied the event and drawn some implications (or lack thereof) for Sustainable Finance.
Let’s break this down here..
Context and Initial Thoughts
Overall COP 27 was never geared to be a big COP or be one of the key COPs that measured 5 year progress marks against major international climate goals.
Unfortunately, the general-consensus seems to be that COP27 was disappointing, however, that’s if we mark this against large expectations.
If we expected a talk feast with a few interesting announcements, well that what we received.
We believe that the COP format needs a reboot.
As one of the most important forums to set global climate goals, things seems to not be working. There wasn’t much that was eye catching or many headline grabbing announcements, the progress was more subtle and varied.
While there has been mixed progress (see graphic below) overall it hasn’t been near enough:
Four Key Thematics and Implications
Let’s review the key themes and relate this back to the context and dynamics for Sustainable Finance:
Whilst the COP structure represents a crucial forum for global decisions makers, it isn’t generating enough action.
Plans, initiatives and commitments are great, however, action is needed urgently and now.
Politics is one of the biggest barriers to achieving net zero and the politicization of climate change is continuing.
Lets get out of our tombs, be inspired by the Pyramids and get to work!